DividendChannel is aimed at retail investors and financial advisors trying to maximize the opportunities in yield and income. DividendChannel is a one-stop source for aggregated data on dividend stocks, including features such as a dividend stock screener, a live dividend feed, an ex-div calendar, and a dividend calculator.
A stock look-up on the site will provide investors with information about a company’s dividend history.

Land This Bargain Even Cheaper Than Director Luczo Did

There’s an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on June 4, Microsoft Corporation’s Director, Stephen J. Luczo, invested $502,600.00 into 17,500 shares of MSFT, for a cost per share of $28.72. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money.

In trading on Tuesday, bargain hunters could buy shares of Microsoft Corporation (NASD: MSFT) and achieve a cost basis 6.9% cheaper than Luczo, with shares changing hands as low as $26.75 per share. It should be noted that Luczo has collected $0.20/share in dividends since the time of their purchase, so they are currently down 6.2% on their purchase from a total return basis. Microsoft Corporation shares are currently trading off about 3.6% on the day. The chart below shows the one year performance of MSFT shares, versus its 200 day moving average:

Looking at the chart above, MSFT’s low point in its 52 week range is $24.30 per share, with $32.95 as the 52 week high point — that compares with a last trade of $27.02. By comparison, below is a table showing the prices at which insider buying was recorded over the last six months:

Purchased

Insider

Title

Shares

Price/Share

Value

06/04/2012

Stephen J. Luczo

Director

17,500

$28.72

$502,600.00

The current annualized dividend paid by Microsoft Corporation is $0.92/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 11/13/2012. Below is a long-term dividend history chart for MSFT, which can be of good help in judging whether the most recent dividend with approx. 3.3% annualized yield is likely to continue.

Post Your Comment

Post Your Reply

Forbes writers have the ability to call out member comments they find particularly interesting. Called-out comments are highlighted across the Forbes network. You'll be notified if your comment is called out.